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University of Auckland Professor of Asian Studies Manying Ip said Chinese New Year was considered to be the most important festival by the Chinese.

"The festival dates back centuries and it is a time when families come together and when deities and ancestors are honoured," she said.

"Given the increase in the Asian population here, Chinese New Year has also become an important cultural landmark in New Zealand."

According to last year's Census figures, the combined total of New Zealanders who identified themselves as Chinese was 172,000.

There are also about 30,000 Koreans here who celebrate the festival.

"When we first came to New Zealand in the 1970s, no one even knew the date for Chinese New Year let alone celebrated it," Professor Ip said.

"It's quite astonishing that we now have everything, in keeping with tradition, from firecrackers to start and a lantern festival to end the festivities."

Professor Ip said the "non-political, non-controversial" nature of Chinese New Year meant politicians and community leaders were happy to be involved, and its popularity was further fuelled also because it fell during the warm summer months when Kiwis were still "in holiday mood".

The Year of the Horse was welcomed with a bang last night with hundreds of booming firecrackers and a lion dance performance outside Auckland's SkyCity.

But new year celebrations started with a festival and market day at the ASB Showgrounds two weeks ago and Lunar Fest at the Trusts Arena last weekend.

Tonight, the God of Fortune will be taking a "leap of prosperity" for the first time - taking a SkyJump from the top of the Sky Tower - to kick off the first public celebrations in the central city for the year.

"The idea is to show the God of Fortune coming down from the heavens to bless the city with prosperity," said event organiser Paul Young. The Chinese lion dance is considered to be a highlight, where the beating of the drum and clanging of cymbals are believed to help evict bad spirits.

At Chinese New Year, people traditionally wear red - the colour that symbolises fire and drives away bad luck - and children are given "lucky money" contained in red packets, or hong bao.

Next week, red paper lanterns will be hung across Queen St and parts of Karangahape Rd. Lanterns, Asian street food and performances from local and overseas artists return to Albert Park for the Auckland Lantern Festival from February 13-16.

The lantern festival has been part of Chinese New Year celebrations since the Han Dynasty (206BC to AD221), and is also popularly referred to as Chinese Valentine's Day.

Asia New Zealand Foundation culture director Jennifer King said the Auckland festival aimed to be "quite a nostalgic event, so that Chinese might remember what it was like back in China in the old days, maybe when they were children".

International acts that will headline this year's festival include Tang Dynasty, one of China's oldest and best known heavy metal bands, the Shanghai Jiangzhou Drum Troupe on ancient war and modern LED drums, and Chinese kite artist Guo Hongli, from Weifang.

Those born in the Year of the Horse are believed to be hardworking, sociable, energetic and witty.

Accountant Lu Yinghui, 25, from China's Guangdong province, said eating dumplings during the festive season was a tradition she had kept since childhood.

"Chinese dumpling is one of the most important foods because it is shaped like ancient gold ingots and symbolises wealth," Miss Lu said. "During the New Year season, we will be eating as many dumplings as possible because it means we will have good fortune for the whole year."

Zhi Hua Cai, head chef at SkyCity's Jade Dragon restaurant, said it was a common Chinese belief that "luck is in the food".

In New Year dishes, ingredients with names that sound similar to the words for luck, prosperity or money take precedence.

Among the popular dishes at the New Year dinner table were "yu sheng" or raw fish salad and "nian gao", also known as Chinese New Year pudding, Mr Cai said.

"Eating yu sheng is said to bring good luck. The pronunciation of fish in Chinese sounds like abundance, and eating fish means you will have a year of surpluses and abundance," he said.

"Nian gao also means that you will continue to rise and prosper all year long."

Festive dinners will also feature specialty meats, such as waxed-cured duck and Chinese sausage, and "expensive seafood" such as shark fin, lobster and abalone (paua).

Most Chinese restaurants here, including Jade Dragon, offer a special Chinese New Year menu over the 15-day festive period.

Some restaurants, such as Grand Harbour at the Viaduct, are advising customers against ordering shark fin dishes, despite having them on the menu.